Saica Plans $800M US Push in Five Years; Progroup and Klingele Add Capacity

Spain-based paper and packaging group Saica is preparing to grow further in the United States. The company has announced an $800 million investment over the next five years to expand its US operations. The funds will be directed toward what Saica describes as “strategic acquisitions or new plant construction.” Saica is currently developing its first US production base—a corrugated board plant in Hamilton, Ohio—scheduled to open in early 2022. Saica US said the site will initially create 64 jobs.

Ramon Alejandro, president of Saica Group, said the path into the US market has not been easy, but the company is confident it can deliver products that stand out in a highly competitive market. He added that Saica’s deep expertise in low-grammage recycled paper production, combined with rising demand for cartons, makes this the right moment to expand in the US.

Germany’s Progroup is also continuing its expansion. The company confirmed that it is beginning preparations for construction of the PW15 secondary plant, to be built near Petersberg and Hochspeyer in Rhineland-Palatinate, Germany. Starting in the second quarter of 2023, the site is expected to produce up to 500 million square metres of corrugated board per year. The plant will create about 60 new jobs and cover roughly 28,000 square metres. Progroup’s investment in the new building exceeds €90 million, and the company will keep pursuing its growth strategy.

The facility will be located next to the plant of packaging manufacturer G&G Preisser. Maximilian Heindl, chief development officer and deputy CEO of Progroup, noted that being close to G&G Preisser was a key reason for the site choice. He said linking the two companies’ logistics and production processes could unlock significant potential for more sustainable and efficient operations.

The two companies’ cooperation will create a new packaging park at the site, with the neighbouring secondary plant receiving corrugated board from Progroup through direct logistics on a just-in-time basis. The PW15 plant will make almost all commonly used grades of corrugated board. Its planned production speed is 400 m/min with a working width of 3.35 metres. The line is designed for three-layer and five-layer Next Board corrugated board, with combinations in B, C, E and F flutes and smaller grammages.

Over the long term, Progroup is working towards carbon-neutral recycling. To that end, the company is investing about €2 million at the new site in state-of-the-art, resource-saving production methods. For example, Progroup plans to use an efficient third-generation system. This is expected to cut fossil fuel use and lower CO2 emissions through efficient energy use.

The building shell at PW15 will be designed to high energy-performance criteria, lowering winter heating loads and summer cooling requirements. The facility will also include air-handling units with efficient heat recovery and up-to-date air circulation design. These sustainability and resource-efficiency investments will carry forward Progroup’s green high-tech approach without interruption.

Once fully operational, the new plant will run at one of the highest automation levels in the industry. Modern production equipment, fully automated transport systems, high-bay warehouse technology and process control systems that connect all operations will make this possible. Jürgen Heindl, CEO of Progroup, stated that PW15 would reinforce the Palatinate region’s standing as a business location and broaden the company’s reach in markets across northern France and southern Germany. He added that Progroup remains committed to its growth strategy, aiming to combine dependable supply and strong product quality for existing customers with outreach to new customer segments.

Germany-headquartered Klingele Paper and Packaging Group is also expanding in West Africa. The group recently built a new secondary plant near Dakar, Senegal. Production is expected to begin in summer 2022 and initially create about 45 jobs. Klingele’s move has received financial backing from DEG, the German development finance institution. Total investment is expected to be about €7.5 million, including €5 million from DEG.

Klingele has operated in Mauritania since 2013 and now runs two production facilities there, focusing on packaging for the fishing sector and industrial customers. Soon, the Diamniadio industrial zone near Dakar’s new port will host a new plant with two production lines. Corrugated board from Klingele Embalajes Canarias, Klingele’s Tenerife-based subsidiary, will be converted into carton packaging at the site.

The production hall has already been built. In the first half of 2022, Klingele will install a four-colour box-making machine, a three-colour Ward rotary die-cutter and five Boix lid-and-base machines. The products will mainly serve agriculture, fishing and the broader food sector. The plant’s initial capacity is 4,000 tonnes, and expansion is already being planned as output increases. Klingele’s long-term goal is to cover the West African market from Morocco to Gabon.

—Source: China Packaging Network (pack.cn); original link: http://news.pack.cn/show-378300.html